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~~/ <br />City of <br />Elk -~ <br />River <br />REQUEST FOR ACTION <br />To Item Number <br />Ci Council 7.3, <br />Agenda Section Meeting Date Prepared by <br />Administration Aril 6, 2009 Tim Simon, Finance Director <br />Item Description Reviewed by <br />Resolution Requesting Action of the Board of Commissioners Lori ohnson, Ci Administrator <br />of the Elk River Economic Development Authority, Minnesota Reviewed by <br />Calling for Redemption of Certain Outstanding Bonds. <br />Action Requested <br />The approval of a resolution requesting action of the Board of Commissioners of the Elk River <br />Economic Development Authority, Minnesota calling for redemption of certain outstanding bonds. <br />Background/Discussion <br />After every tax settlement and bond payment the Finance Department reviews the various debt service <br />funds and outstanding bond issues to determine if sufficient cash exists to pay-off any outstanding bonds <br />assuming they have reached their callable date. <br />On November 1, 1991, the City and EDA issued $2,740,000 in City Hall and Law Enforcement Facility <br />Revenue Bonds. Subsequently on December 1, 1997, the City and EDA refunded the bonds with a final <br />maturity of February 1, 2011. The bonds have been financed internally thru the NSP fund, Government <br />Buildings Fund, General Fund, and Liquor Store Fund. Sufficient funds exist with the remaining <br />amounts internally financed and. the irrevocable deposit with the escrow agent ($234,155 as of 12/31 /08) <br />to call the remaining outstanding principal plus accrued interest to June 1, 2009. The deposit with the <br />escrow agent (US Bank) will be released and applied against the final payment. <br />Financial Impact <br />Prepaying the bonds would result in a savings of approximately $27,000 less a small amount of accrued <br />interest. The amount to be paid on June 1, 2009 is $410,000 outstanding principal plus accrued interest. <br />Attachments <br />• Resolution Requesting Action of the Board of Commissioners of the Elk River Economic <br />Development Authority, Minnesota Calling for Redemption of Certain Outstanding Bonds <br />Action Motion by Second by Vote <br />Follow Up <br />C:\Documents and Settings\jjohnson\Local Settings\Temporary Internet Files\OLK49\calling1997bonds.doc <br />